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Oversupply Is Primary Source of Oil Price Weakness

Nymex oil futures are up 43 cents at $52.96/bbl, Brent crude is up 59 cents at $57.13/bbl

By

Eric Yep

Updated July 7, 2015 1:03 a.m. ET

0402 GMT [Dow Jones] The primary source of weakness in oil prices is that OPEC’s oil production has been increasing over the past few months since its decision last year to compete for market share, analyst Tim Evans at Citi Futures says. “This additional oil is expanding the market’s physical surplus in our view,” he says. Oil markets declined sharply on Monday, with worries over Greek debt and Iranian nuclear talks as the trigger for the slide, but high U.S. inventories and supply growth outpacing demand were the more critical background issues. Nymex oil futures are up 43 cents at $52.96/bbl, Brent crude is up 59...